Kohl’s Corporation Company Presentation By: Hannah Gregory BUSI 1200 Section 603

Company History Kohl’s was founded in 1962 by Max Kohl as a supermarket chain that eventually expanded into general retail Kohl’s settled into a niche between high-end department stores and discount sellers Sales hit $1 billion in 1992 and Kohl’s achieved a nationwide presence by 2006 with 817 stores in 47 states Kohl’s has won several National Corporate Awards and Corporate Social Responsibility Awards

Kohl’s Mission Statement “To be the leading family-focused, value-oriented specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly and exciting.”

Industry and Competitors Industry Department Store type Retailers specializing in: Apparel Home Goods Shoes and Accessories National as well as exclusive and value brands Competitors Department Stores: JC Penny Sears Discount Retailers: Marshall’s TJ Maxx

SWOT Analysis - Strengths Customer loyalty secured with pricing, sales and credit card program Strategic Action Committees working to ensure merchandise is relevant and inventory is consistent Merchandise Mix Availability of both National and Private/Exclusive Brands

SWOT Analysis - Weaknesses High employee turnover In-store pricing inconveniences Inadequate employee training program Payroll cap that often causes shortage of employees during a given shift

SWOT Analysis - Opportunities Free-standing buildings allowing more flexibility with sales and promotions and gives an edge over competitors located in malls Environmental Endeavors Electronic signage Use of recycled products New store plans to promote long-term sustainability

SWOT Analysis - Threats Sales and pricing of other department stores Discount retailers offering similar products at lower prices

Major Sales Strategies “No-exclusion” sales events No hassle return policy Credit card program “Kohl’s Cash” program

The Future of Kohls Potential leader in Green Initiatives and sustainability efforts Remain the “go-to” destination for sale shoppers Continued growth in sales and income

Needs Kohl’s major weakness: high employee turnover Causes of high turnover: Inadequate training program Payroll caps Lure of competitors offering lower stress or higher pay

Recommendations Revamp employee training program to ensure that all employees are trained adequately, especially in front- end jobs (cashiers, customer service) Raise payroll caps enough to allow more employees on the floor to assist customers and keep the store functional Commission HR departments to find ways to improve employee benefits or offer initiatives to encourage loyalty

Premise Kohl’s is a highly successful retailer that has done well in their specific niche. With their excellent marketing and various loyalty programs, Kohl’s has no problem attracting and keeping customers. However, Kohl’s seems unable to consistently keep employees. With a few changes, an enhanced human resources department, and a re-tooled training program, Kohl’s can inspire employee loyalty which will improve customer relations, profits, and overall company success.

Sources Retailindustry.about.com